The net amount shown on a balance sheet for an intangible asset with an unlimited life should be:
A)the price for which it could be sold.
B)its book value or impaired fair value,whichever is lower.
C)its purchase price minus accumulated amortization.
D)its purchase price adjusted for inflation.

Question

Quizplus · Accepted Answer

First the asset is tested for impairment to determine if future cash flows are less than book value.The test for goodwill impairment is more complex than this test for impairment of other intangible assets.However,if any intangible asset is deemed impaired,it will be written down to fair value.

The Net Amount Shown on a Balance Sheet for an Intangible